OTC Fin Integrates Solvency II Engine Into Data Platform

Technology vendor OTC Fin has launched a Solvency II engine that offers enhanced transparency and look-through functionality. The tool is designed to enable third-party administrators to help their insurance clients comply with the European Union directive on capital adequacy and risk management for insurers.

The engine has been integrated into OTC Fin's PATOne data management platform, and guides users through the completion of the Quantitative Reporting Templates (QRT), which have been developed by the European Insurance and Occupational Pensions Authority (EIOPA).

Once the templates have been completed, the engine will "aggregate this with market risk information to provide the final templates that EIOPA requires," says Diego Tornini, OTC Fin's Barcelona-based financial engineering director.

The Solvency II engine is supported by PATOne's data warehouse, which aggregates data on a single platform. "We aggregate the data, we cleanse it and, at the end, we store all this data and produce our reports, which have all of the slice-and-dice capabilities and portfolio construction capabilities." When the data has been confirmed, it can be converted into XBRL and sent to EIOPA.

Flexibility has been built into the engine to allow for modifications when the regulations are finalized.